Foreclosure Rates Fall Again
U.S. foreclosure rates fell for the third straight month according to RealtyTrac's new report. New foreclosure fillings in June dropped 2.81 percent from the previous month and 6.98 percent from the previous year.
While foreclosure rates are falling, they are still at high levels with 16 straight months of readings of over 300,000. Still 410 out of every 411 homes are not in foreclosure, so there is still some strength in the housing market.
Consumer Prices Continue to Fall
Consumer Prices fell for the third straight month, providing bargains for American Shoppers.
The Consumer Price Index, the government's most closely watched inflation barometer, dipped 0.1 percent in June, according to the Labor Department. Less expensive energy bills were a big factor behind the drop. Prices for food items and airline fares also dropped last month. Also, "core" consumer prices are holding near a 44 year low.
What Happened to Rates Last Week
Mortgage backed securities (MBS) gained +44 basis points last week which caused 30 year fixed rates to decrease for both government and conventional loans. Rate declined on the back of some weaker than expected economic data. Manufacturing Data, Consumer Price Index and Consumer Sentiment all were much worse than market expectations. Economic concerns helped to push investors towards purchasing MBS as a way to earn low yields in exchange for safety that you cannot find in the stock markets.
What to Watch Out For This Week
The following are the major economic reports that will hit the market this week. They each have the ability to affect the pricing of Mortgage Backed Securities and therefore, interest rates for Government and Conventional mortgages. We will be watching these reports closely for you and let you know if there are any big surprises
||National Homebuilders Association Index
||Existing Home Sales
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to us, we monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.
Mike Dunn, Holleigh Sharp & Jeff Sharp
Walden Mortgage Group
Office: (859) 514-4444